[ P R E D I C T I O N S S E R I E S 2 0 2 3 ] such as multi-factor smart beta ETFs , which consider stock fundamentals in addition to just the market capitalisation of a stock . Jason Xavier , head of EMEA ETF capital markets , Franklin Templeton
The adoption of EMS technology will continue to grow into 2023 , with the streamlining of execution workflow driving efficiency in fixed income emerging as key drivers for the buy-side . The next 12 months will build upon existing automation to see additional protocols and destinations made available to smart order router ( SOR ) strategies to deliver improved choice and flexibility of execution to the buy-side . Additionally , bilateral dealer connectivity via EMSs will offer a disruptive alternative to the established RFQ workflow of many desks and will continue to grow into 2023 . EMS ' s ability to combine these connections with other data points available to the buy-side and to offer a consolidated pretrade view of the market while providing intelligent automation capabilities will become crucial in
2023 . As a result , I predict that fixed-income EMS solutions will emerge into mainstream use and become a mission-critical tool for bond desks , similar to their use in other asset classes . Stefano Dallavalle , fixed income product manager , EMEA , FlexTrade Systems
While Europe ’ s post-trade landscape will continue to develop in 2023 , there is a risk that the significant progress made to expand access to competitive clearing in cash equities begins to unravel . The strongest indication of this is the decision of some national exchanges to revert to a reliance on their own clearing provider , but regulatory factors are also at play in the re-emergence of verticalised cash equities market infrastructures . A competitive clearing environment should be viewed as a key element of the EU ’ s efforts to revitalise its capital markets , helping to attract investors and reduce the costs of investing . Cboe Clear Europe , as a long-time proponent of open access , has witnessed first-hand the benefits this market structure brings to market participants . We have seen an increasing uptake for our preferred clearing service this year – which is used when both sides of a trade wish to use alternative CCPs , rather than the primary CCP - and will continue to push for this trend to become mainstream in 2023 . Also on the agenda will be the impact of the central securities depositories regulation ( CSDR ) on settlement performance . With European policymakers working on a reform of the regulation – including a
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